Food group IAWS has reported a 19% rise in pre-tax profit for the year ending July 2004 and said it was well placed to enhance shareholder value through its spread of businesses.
IAWS, which makes specialty baked goods and convenience foods and also sells farm products like fertilisers, said pre-tax profits, adjusted for goodwill and exceptionals, climbed to €97.7m for the year.
Diluted earnings per share rose 17% to 62.10 cent on underlying sales growth of 6%.
'The outstanding feature of the year was the performance of the group's investment in associates and joint ventures,' IAWS said in a statement. 'These contributed substantially to the increase of 14% to €109.1m in total operating profit before goodwill amortisation,' it added.
IAWS said its Lifestyle Food business delivered 7% growth in Ireland and the UK. This performance was achieved in a year in which the group started the integration of Cuisine de France and Delice de France in the UK. The company also acquired Gilson's Bakery in the UK and the Hiestand UK business, while in Ireland it acquired the Carroll Cuisine Group.
Both Roma Foods and Shamrock Foods expanded their product ranges during the year. A relaunch of the Shamrock brand resulted in a 3% year on year sales growth for the brand. Roma launched 19 new product variations during the year.
Food now represents over 70% of total operating profits for IAWS.
In North America, underlying sales at La Brea grew by 13% and at Cuisine de France by 12%. The Tim Horton joint venture produced sales growth of over 100%. La Brea is now the number one supplier of premium artisan bread in the US market.
IAWS said it has committed €200m in North America over the past three years. 'La Brea and the Tim Hortons joint venture are major contributors to revenues and will provide a growth platform for the group in the world's latest convenience good market over the coming years,' the company said.
IAWS said that excluding associates and joint ventures, the group operating profit before goodwill amortisation declined to €84.6m compared with 485.8m in the previous year before of a difficult year in the Nutrition/Agri division.
The company added that the contribution from the Irish feed ingredients business fell due to lower volumes and from marine proteins due to the impact of a weaker dollar on product prices and adverse currency movements.
Commenting on the 2004 performance, IAWS Group Chief Executive Owen Killian said it demonstrates good performance from the company's continuing businesses as well as the benefits of the investments in the US, Canada and Europe.
'We have a robust balance sheet and our business continues to deliver excellent free cash flow,' he added.
IAWS shares closed up three cent to €10.38 in Dublin.
